Title
Environmental Management Department recommending the Board approve and authorize the Chair to sign a budget transfer adjusting the budget for Fiscal Year 2024-25 in the following Orgs:
1) Increase budget for staff labor and interfund transfers in the South Lake Tahoe Solid Waste Org by $22,000 due to increased activity with AB 939 and SB 1383 regulations which impacted staff time and subsequently labor and benefits, which is offset by a $22,000 decrease in contingency within the same Org;
2) Increase budget for operating transfers out in the South Lake Tahoe Solid Waste Org and operating transfers in for the Solid Waste Org in the amount of $23,000 for the Local Enforcement Agency site inspections of landfills in the South Lake Tahoe area, which is offset by a $23,000 decrease to contingency in the South Lake Tahoe Solid Waste Org; and
3) Increase to interfund transfers in of $22,000 from South Lake Tahoe Waste Org, contingency fund transfer out to Admin Org to fund maintenance: computer software in the Administration Org by $22,000 to support the purchase of Board approved software, Hedgerow Software US, Inc. (4/5 vote required).
FUNDING: 100% County Service Area 10, Parcel Assessment Fees.
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DISCUSSION / BACKGROUND
Environmental Management is requesting a budget transfer increasing specific budgets of the South Lake Tahoe Solid Waste Org, the Solid Waste Org, and the Administration Org. These changes are due to increases in labor costs in the South Lake Tahoe Solid Waste Org, Local Enforcement Agency (LEA) site inspections costs within the Solid Waste budget, and unanticipated additional costs within the Administration Org towards the purchase of the Board approved software, Hedgerow Software US, Inc.Legistar File 24-1012. The increases will be funded by a decrease of $67,000 in the South Lake Tahoe Solid Waste Org contingency fund (Attachment A, Line item #4).
The South Lake Tahoe Solid Waste Org (3810110) is anticipating an increase in labor costs due to increased activity with AB 939 and SB 1383 regulations with the franchise hauler and associated implementation, education, and enforcement requiring additional staff time. Based on actuals posted to date, it is anticipated that the salary budget will need an additional $22,000 for salary and benefits, which will be offset by a decrease to contingency in the same org. (Attachment A: Line Items #1 and #4).
Additionally, the Department is requesting to increase operating transfer out from the South Lake Tahoe Solid Waste Org and an increase to contingency in the Solid Waste Org in the amount of $23,000 (Attachment A: Line items #5 and #6), in an effort to more accurately spread costs for prior year LEA site inspections. Environmental Management found that certain charges in the prior year, LEA site inspections, were billed to Solid Waste but should have been billed to South Lake Tahoe Solid Waste. This budget transfer will reconcile both budgets. For the South Lake Tahoe Solid Waste Org, this increase of $23,000 will be offset (Attachment A: Line items #3 and #4) by a decrease in the South Lake Tahoe Solid Waste contingency budget.
Finally, the Department is requesting to increase intrafund transfers in within the Administration Org (3800000), in the amount of $22,000 (Attachment A: Line item #7), and increase maintenance: computer software by the same amount (Line item #8). Environmental Management budgeted for a new software replacement for EnvisionConnect, and on September 10, 2024, the Board approved a contract with Hedgerow Software US, Inc. (Legistar File 24-1012), wherein it was indicated that a future Board item would be brought to increase and adjust appropriations. Environmental Management is implementing this new software program this year, and the one-time migration and implementation costs were unknown when the budget was developed. The increase in maintenance: computer software will be offset by the decrease to contingency in the South Lake Tahoe Solid Waste Org (Attachment A: Line 4).
ALTERNATIVES
The Board may choose to deny the approval of this Budget Transfer. This would result in a deficit in the South Lake Tahoe Solid Waste org labor objects as well as a deficit in the Administration org in professional services.
PRIOR BOARD ACTIONS
See above Discussion/Background
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Community Development Finance & Administration
CAO RECOMMENDATION
Approve as recommended.
FINANCIAL IMPACT
There is no change in Net County Cost as a result of this item. Increases to appropriations are fully offset by increases to revenue or decreases to contingency.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Clerk of the Board will obtain the Chair's signature on the original budget transfer and will forward the budget transfer to the Auditor/Controller for processing.
STRATEGIC PLAN COMPONENT
Strategic Innovation
CONTACT
Jeffrey Warren, REHS
Director
Environmental Management Department